1/13 This is a shockingly false statement & @BusisaMoyo's response to this view is also incorrect. The ONLY reason "the economy stopped trading 4 yrs ago" was becoz Mangudya started printing electronic US$s to replace the physical US$s he was stealing from everyone's bank acc's. https://twitter.com/kwirirayi/status/1275439725088665601

2/13 When we "dollarised" in 2010, there was no forex in the banking system - ZERO. We started off with less than US$200m circulating in the system, which grew to US$2billion within 2 yrs. As confidence grew in the economic policy consistency of the GNU, we ended up with more..

3/13 @BitiTendai could tell us how much was circulating by the time GNU ended, since Mangudya refuses to account for himself neither to the public nor Parly (except when being questioned by incompetent ZANU PF MPs as happened last month).

4/13 When GNU ended, Mangudya & the ZANU PF Gvt started stealing US$s banks had in the vaults @ReserveBankZIM, using them to fund a Gvt that was living way beyond its means. Everything Gvt imported had to be paid for with actual forex, not the useless figures Mangudya punched..

5/13...into Bank's acc's to pay for Treasury Bills when they matured. Those figures were backed by nothing, Mangudya had used all the actual US$s we used to withdraw to pay for the profligacy of voracious gvt that lived beyond the Billions of US$s collected by ZIMRA.

6/13 Becoz people couldn't withdraw their US$s from the bank anymore, they stopped depositing them with banks Remember a law being passed forcing shops & retailers to bank money or face jail? But becoz Mangudya had also legalised electronic $'s, this was what 99% of..

7/13 ...people started using to pay, shops were not getting any cash, not even Bond notes, which had now become more valuable than Ecocash or RTGS, @matigary .

8/13 Dollarisation'd work in Zim under conditions:

1. Pass a law forcing gvt to live within its means. It has to be a law, that can only be overturned by a 60% vote in Parly.

2. Remove Mangudya, (the reason for lack of confidence in the banking systm & economy in general)

9/13

3. Put restrictions on repatriation of funds & offshore payments for 10 years. This'll do 2 things:

a) minimise the practice of sending forex to offshore tax havens by Co.s & individuals

b) disincentivize the rent seeking & dumping by SA, Chinese Co.s etc who..

10/13
..during dollarisation, only used Zim as a source of US$s using an inflated pricing model

4. Take up @BusisaMoyo's suggestion of a Social Contract BUT the contract must be on reducing US$ wages across the board to ½ or 75% of where they were at height of dollarisation...

11/13

...linking this to an agreement on pricing that aligns our prices with Zambian or SA prices. Why? Becoz the reason our exports were not competitive & will be again if we redollarise was becoz everything in Zim was overpriced starting with labour.

12/13

5. Stop gvt subsidising things electricity, agric. Make consumers pay market prices for power & leave banks to finance Agric using a commercial model, where those who don't pay back lose property.

If this (& more) is done, confidence will return in about 5 years BUT..

13/13

..the US$1.4 billion currently circulating outside the formal system will slowly start flowing into the banking system. Gvt to contain wage bill (remember when we 1st dollarised, gvt was paying teachers US$100 per month in vouchers & people think that was a Golden Age!)